Mereja.Forum

[sarcasm]

Warms my heart to see Ethiopian PM Abiy warn local banks to prepare for foreign competition. That was one of my big 3 policy disputes with PM Meles when I was ambo - along with opening telecom and allowing private land ownership.

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[Zmeselo]

Ewwww! "Pleasing us"? That sounds, dirty!

Warms my heart to see Ethiopian PM Abiy warn local banks to prepare for foreign competition. That was one of my big 3 policy disputes with PM Meles when I was ambo - along with opening telecom and allowing private land ownership.

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[sarcasm]

old article from 2014 . . .

Ethiopia: Banking and Telecoms Liberalisation, and WTO Accession



“Sorry. The network is busy now. Please try later.”

It is a phrase familiar to all who live and work in Ethiopia. The cadence is mesmerising, like a haiku. The phone rises to your ear, the line hums a little, and then the recorded poetry peals off:

Sorry

The network

is busy-now

Please try la-ter

Telecommunications infrastructure in Ethiopia is shaky. According to 2013 figures, less than 2.5% of Ethiopians have access to the internet, compared with 40% in Kenya.[1] Calls which stubbornly refuse to connect are a part of daily life.

Ethiopia Telecom is Africa’s last remaining big state telecoms monopoly. Many feel that connectivity, so vital for economic development, would be markedly improved by privatization and deregulation of the sector. The same goes for the other pillar of the economy which remains firmly under state control, banking.

However, Ethiopia has had an uneasy relationship with the free market since the fall of its communist government in 1991. Unlike other post-communist countries, Ethiopia did not open the floodgates of capitalism. The leader of the incoming government, Meles Zenawi, was himself strongly influenced by Marxist socio-economic theory and largely rejected Western ideals of economic liberalisation. Instead, he charted a course for Ethiopia through which he sought to emulate countries such as South Korea; strongly developmental, with a powerful central state.


Enter onto the scene the World Trade Organisation (WTO) and Ethiopia’s accession bid, started in 2003. The Ethiopian government knows well that it must deregulate in order to accede to the WTO, but is determined to conduct the process its own way, and in its own time. As with most things, Ethiopia does not like to feel pushed around by the internationals, as the country’s then-Trade Minister Girma Birru relayed in 2009: “Primarily we will join the WTO not to make others happy, but to make our economy work. So to the extent it helps our economy we will liberalize things, but if it’s not going to assist our goals in trade and development we will not liberalize. Why do we have to?”[2]


In practical terms this refusal to liberalize means shielding banking and telecoms, among other sectors, from foreigners. Speaking in 2013, Meles Zenawi’s successor, Hailemariam Desalegn, relayed that “This sector [telecoms] is a cash cow, and that’s why the private sector wants to get in there … We want to use that money for infrastructure development,”[3] and, in 2012, “We will not allow in foreign banks. We will continue with this policy in coming years.”[4]


The United States has other ideas. Speaking on the side-lines of the 2013 Bali WTO Ministerial Conference, Michael Punke, the permanent representative of the United States to the WTO, had this to say about Ethiopia’s bid for membership:


“We do believe that part of the accession process that is enormously beneficial to acceding countries is this focus … on domestic reform. And from that standpoint, we think that some of the most critical infrastructure for successful integration into the international economy includes areas like state of the art financial services and state of the art telecom.”[5]


As the vintage of the above quotes attests, the battle lines were drawn on this issue by 2013, if not earlier. The Ethiopian Ministry of Trade began to formulate its Market Access Offer on Services for negotiation with the WTO in September of that year, and then … nothing happened. Two years of silence ensued. The Market Access Offer on Services has yet to materialise.


To observers without inside knowledge of the delicate process currently underway in Ethiopia and elsewhere, events could appear to be in stalemate. Will the Ethiopian government accede to Punke’s point of view, as it accedes to membership of the World Trade Organisation? Or will the country find a way to preserve state ownership and state control of its most prized industries, which WTO negotiators might find acceptable? Or will Ethiopia simply keep its accession bid frozen for years to come?


That’s the big question. But, whilst investors could be tempted to sit back and await the outcome, doing so would put them several steps behind their competition. Many large telecoms and finance organisations are eagerly awaiting Ethiopia’s liberalisation, and are planning in earnest for it. Any growth-minded firm in these sectors would be wise to do the same.


[1] “Telecoms in Ethiopia – Out of Reach”, The Economist, 24th August 2013. http://www.economist.com/news/middle-ea ... -out-reach


[2] “Ethiopia Won’t Free Telecoms, Banking for WTO, Minister Says”, Bloomberg, 19 February 2009. http://www.bloomberg.com/apps/news?pid= ... ot_hJ.1pyc


[3] “Ethiopia’s Leader Aims to Maintain Tight Rein on Key Businesses”, Financial Times, 27th May 2013. http://www.ft.com/cms/s/0/c0985378-c5ef ... z3jkfK1rrs



[4] “Ethiopia Locks Out Kenyan Banks as it Opens Up Market”, Kenya Business Daily, 22nd November 2012. http://www.businessdailyafrica.com/Corp ... index.html


[5] “Global Trade: A Search for Agreeable Landing Zones”, Addis Fortune, 8 December 2013. http://addisfortune.net/interviews/glob ... ing-zones/

Source https://agathoninternational.com/blog002/

[Axumezana]

PM Meles strategy was not to indefinitely prevent foreign banks from entering the local market but to give time to the local banks to build critical mass and build capability before they face foreign competition. Abiy's decision to allow foreign banks is timely and a right strategy that followed PM Meles's progressive opening of the local financial market to the globalized world. While Isaias followed an ignorant confrontational strategy against the USA and the West , PM Meles was able to navigate carefully on the narrow path with the West with out compromising the strategic national interest of Ethiopia. That is why the Americans acknowledge "Meles had a world class mind"

[Cigar]

Axumamenzra, would you please take Isayas’s di”ck out of your agame a”ss hole.
The topic is about your country and not Eritrea. Why are you so concerned about the well being of Eritreans?
We wish the best for Ethiopia so long you funfunat agames are seen by the Ethiopians as second class citizens as you should be.
This traits of yours is bizarre and is a testimony that you must believe Isayas is screwing your agame a”ss holes in daily basis just like you are seeing Isayas in nightly basis in your sleep.
Just put one thing in your mind. We know that Wedi Afom’s pleasure is to see you agames suffer for your hasadinet nature, but such will always be in every Eritrean mind including in the minds of our future leaders.
Isayas, Isayas, Isayas…… wow stop it you dumb a”ss.
By now you should understand him and either deal with it or kneel down and accept your Ethiopianism…..Ethiopianism which you know is working for a win, win situation for both countries and Ethiopianism which is in the same page of destroying you funfunat agames.
PMAA is the other side of the same coin with Isayas, specially when it comes to your destruction.

[sarcasm]

In midst of war Ethiopia announces it will open up banking sector.

Music to the ears of foreign investors. No doubt move aimed at framing Abiy regime as market-friendly.

Privatisation and liberalisation meaningless in a contest of protracted war and political instability.

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[sarcasm]

Ethiopia’s central bank opens doors to foreign lenders


Ethiopia’s central bank issued a directive yesterday (June 25) paving the way for foreign banks and investors to participate in the country’s banking industry. The National Bank of Ethiopia (NBE) said the move marked the latest stage in the country’s progress towards financial liberalisation and was effective immediately. It added that the new regulatory framework was the culmination of year-long consultations with a range of stakeholders.


https://www.centralbanking.com/central- ... %20offices.

[sarcasm]

Ethiopia’s central bank opens doors to foreign lenders

Awash Bank annual profit increased by 113%! The United States banking industry net income increased by a mere 5.8%! No wonder the world banks have been eying up Ethiopian banks.


Awash Bank posted a pre-tax profit of 22 billion birr for 2024/25, up 113% year-on-year. Total income rose to 64 billion birr. Loans reached 219 billion birr, FX earnings hit $2 billion, with an NPL ratio of 1.8%.

Awash Bank reported a pre-tax profit of more than 22 billion birr for the 2024/25 financial year, a 113 percent increase from the previous year, as Ethiopia’s largest private lender delivered strong income growth and deepened digital penetration — even as monetary policy restrictions continued to weigh on balance sheet flexibility.

Total income rose 77 percent year on year to over 64 billion birr, according to results published on June 30. The bank contributed more than 10.8 billion birr in taxes, while total capital climbed 37 percent to exceed 37 billion birr.

But the headline results mask growing pressures on commercial banks operating under increasingly interventionist oversight by the National Bank of Ethiopia (NBE). Awash was required to channel 42 billion birr into mandatory treasury bill purchases, part of the central bank’s controversial efforts to finance public spending and mop up excess liquidity. Discontinued as of June 30, 2025, the measure, while supporting fiscal policy, has constrained credit creation and squeezed returns.

Loan book growth was capped at 20 percent, aligned with the NBE’s 18 percent ceiling on private sector credit expansion. Total outstanding loans reached 219 billion birr, with 16.6 billion birr extended to micro and small enterprises across more than 14,000 borrowers.

Despite those constraints, asset quality remained strong. Awash reported a non-performing loan (NPL) ratio of just 1.8 percent, well below the industry average — a notable achievement in a volatile macroeconomic environment marked by inflation and currency depreciation.

Foreign exchange operations were a key bright spot. The bank generated two billion US dollars in forex during the fiscal year, a 25 percent increase from the previous period, as remittance flows and trade finance activity rebounded modestly despite a fragmented exchange rate regime and persistent dollar shortages.

Digitalisation continued apace, with digital transactions surpassing 1 trillion birr and accounting for more than 76 percent of the bank’s total transfers. Customer numbers grew to more than 15 million, with close to three million new clients onboarded. The branch network expanded by 52 to reach 989 nationwide.

Source https://birrmetrics.com/awash-bank-prof ... nstraints/


US bank profits rose to $70.6bn in Q1, says FDIC
US banks reported $70.6bn in profits for the first quarter of 2025, representing a 5.8 per cent increase from the previous quarter, according to data released by the Federal Deposit Insurance Corporation on Wednesday.


https://www.thebanker.com/content/a0517 ... 0Wednesday.
https://www.fdic.gov/news/speeches/2025 ... arter-2024#

[sarcasm]

Hijra Bank Posts 740% Profit Surge, Earns Over 1.8 Billion Birr in 2024/25 Fiscal Year
July 4, 2025

Hijra Bank has reported a 740% surge in annual profit, earning over 840 million birr during the 2024/25 fiscal year. The bank’s total income exceeded 1.8 billion birr — up 148.85% from the previous year — marking one of the strongest performances in Ethiopia’s growing interest-free banking sector.

According to the bank’s annual performance disclosure, total assets rose to more than 15 billion birr, a 95.37% increase year-on-year. Customer deposits also grew sharply, climbing by 91.4% to reach 12 billion birr — signaling robust trust and engagement from its expanding customer base.

https://www.stockmarket.et/hijra-bank-p ... scal-year/

[sarcasm]

Zemen Bank Earns 9 Billion Birr Profit Amid Financial Sector Reforms

Increased from 3.7B to 9B in one year, i.e, 143%!
July 2, 2025


Zemen Bank has reported a remarkable profit of 9 billion birr for the just-concluded financial year, with total revenue reaching 14 billion birr. The bank’s paid-up capital has also surpassed 9 billion birr, signaling a strong capital base and continued growth momentum.

CEO Dereje Zebene attributed the performance to the bank’s strategic direction and favorable developments in the broader financial sector. He highlighted key reforms shaping the industry, including the transition to a floating exchange rate system and the establishment of the Ethiopian Capital Market.


https://www.stockmarket.et/zemen-bank-e ... r-reforms/


Press Release
October 19, 2024
Addis Ababa
Zemen Bank earns Pre-tax Profit of Birr 3.77 billion and Delivers 37.6 percent Earnings Per Share to its Shareholders

Annual profit surges by 36.8 percent

Zemen Bank announces an Earning Per Share (EPS) of 37.6 percent to its shareholders,
following a pre-tax profit of Birr 3.77 billion in the 2023/24 fiscal year. This was disclosed
on its annual report released on the 16th Annual General Meeting of shareholders held
today at the Millennium Hall.

https://www.zemenbank.com/images/Octobe ... nglish.pdf

[Dama]

He even said he would die for USA. That was to " please" world's rogue and heinous imperialist.

[Deqi-Arawit]

PM Meles strategy was not to indefinitely prevent foreign banks from entering the local market but to give time to the local banks to build critical mass and build capability before they face foreign competition. Abiy's decision to allow foreign banks is timely and a right strategy that followed PM Meles's progressive opening of the local financial market to the globalized world. While Isaias followed an ignorant confrontational strategy against the USA and the West , PM Meles was able to navigate carefully on the narrow path with the West with out compromising the strategic national interest of Ethiopia. That is why the Americans acknowledge "Meles had a world class mind"

The Galla is prepared to sell his own [deleted] in auction to prolong his rule. let alone Ethiopia, major developing countries like china and India don't even allow foreign banks to enter the local market for the right reason of course.